No agency safe; Baldacci orders all budgets cut
By Mal Leary
Capitol News Service

AUGUSTA, Maine — No state agency is exempt from Gov. John Baldacci’s order to find budget cuts totaling 10 percent of current spending levels.

The order even applies to the state’s newest agency that has yet to propose a budget.

“No one is exempted from this, not human services or education or corrections,” Finance Commissioner Ryan Low told members of the State Corrections Board on Thursday. “That does not mean we will flat-fund every agency in government, but we want all agencies to go through the exercise.”

The State Corrections Board was created earlier this year and is working on a budget request for the next two-year budget cycle and for six months starting in January. Panel members were seeking some direction from Low on what budget targets applied to them. He warned the budget situation could get worse.

“One of my biggest concerns is that we have a continued erosion of revenue,” Low said. “I don’t think there is anybody that thinks revenues will stay at current levels.”

He said the 10 percent cut target was set on the assumption it would be enough to cover reduced revenues. He said after revenues are reprojected next month the governor will have better information for making his final budget recommendations and could ask for further cuts if the revenue outlook worsens.

Low said just two agencies, the Department of Education and the Department of Health and Human Services, consume more than two-thirds of state revenues and dominate the state budgeting process. What he calls “the rest of state government” has seen its share of state resources decrease every budget for the last decade.

“What we have seen since 1998 is that the rest of state government, and corrections falls into that, has gone from 24 percent of the state budget to 22, to 20 and to 19 percent, where it is now,” he said. “And if I had to guess, I would say it will continue to go down.”

Low said state agencies have until Oct. 10 to submit their revised budgets, and he expects many will have difficulty determining where to make cuts to meet budget targets. He has asked for a “holistic” solution from each agency, not a set of options.

Corrections Commissioner Martin Magnusson said his agencies’ target, which directly affects the work of the State Corrections Board, is $16 million for the two-year budget. Flat funding is $326.6 million for two years.

Magnusson asked for an additional $57.2 million to keep current programs at current levels with $30.8 million of that earmarked to operate the board over the two-year budget cycle.

“Flat funding does not mean things the way they are right now,” he said. “Flat funding means substantial reductions, and I’m talking about the Department of Corrections, in what the state can provide.”

When members of the board pressed on what the DOC will be targeting for cuts, Magnusson said two or three state correctional facilities would have to be closed and that would put more pressure on county jails. He said the 50-bed unit in Charleston and the new women’s unit in Bangor likely would have to be closed under a $16 million reduction from current spending.

“It takes away the opportunity for group homes for the women,” he said. “We are in dire straits just on the flat funding let alone the 10 percent decrease.”

Magnusson said flat funding really means a decrease in funding because of the increased energy costs for both heating the correctional facilities and paying for higher transportation costs.

“And if you have to do 10 percent on top of that, we are facing some serious problems,” he said.

Waldo County Sheriff Scott Storey, a member of the board, said the budget cuts make the difficult job of transitioning all of the separate correctional systems into a unified statewide system even more difficult.

“It doesn’t do any good if we are shifting costs around so counties have to pick up cuts by the state,” he said.

DOC funding is from general state revenues, while county correctional facilities are funded by the property tax.

Panel members started the work of building a budget to operate the corrections board. The new system is supposed to create an integrated system that will be more efficient, saving taxpayers at all levels of government over the long haul. Many worry budget cuts could stymie that effort.

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14 comments on this item

The economy is awful. Everyone I know is having to cut back on spending. It makes sense that the government will have to do the same. It doesn't seem like Congress really understands how the normal person is affected. I found this site that is collecting comments on how the economy is affecting people. I guess the plan is to post the comments and to take the stories to congress so they can see what is happening. I sent in my story and I keep checking back to see what others have to say. Take a look . . . I think it's a good idea.

http://www.friendsoftheuschamber.com/email/wall_street_3.html

I cut back last year, including no heat all year. I have to pay to "bail" people out, which takes all my money. Speaking of cuts and bail outs. I say we vote on "The" bail-out. Give the money to those who have been working, who have supported the welfare, the rich and the wars., and those who wrote letters against N.A.F.T.A. and New World Order. If no one has yet figured out that didn't mean world piece write those letters to Washington now.If those of us who worked all along say got $400,000.00 of the bailout, we'd of course pay tax on it, leaving us with a little under $300,000.00, getting us who have been carrying everyone elses load out of debt, pay off mortages, school loans and other bills. People could start businesses, create jobs and every responsible person would be the winners for a change. I think it's time that those who were making obivious bad choices fall flat and everyone learn from their mistakes.

Corrections Commissioner Martin Magnusson said his agencies’ target, which directly affects the work of the State Corrections Board, is $16 million for the two-year budget. Flat funding is $326.6 million for two years.

Magnusson asked for an additional $57.2 million to keep current programs at current levels with $30.8 million of that earmarked to operate the board over the two-year budget cycle.

What does he mean $30.8 million to operate the board for 2 years? That seems like a large chunk just for administration. I would like to see a break down of those costs. It soundds like several people are being over-paid.

If NO AGENCY IS EXEMPT lets see a cut to the BLAINE HOUSE Budget. With108 out of 110 payrolls being for "Governors Special Assistant" in 2006 and 2007, I'm sure there is room for a reduction. And how about the Maine State Legislature? How does $20,367,628 for the years 2006 and 2007 sound for their wages sound. Cut backs are needed all the way around. That includes how much our representatives, senators, and governor get paid along with their staffs. So much for the stance on providing for education that Baldacci used in his campaign. How quickly they forget once the power of office is in their hands....or perhaps he had eyes on a VP nomination like Palin?

Let me help you out Mr. Baldacci. You can restore $1,600,000 (yes, over a million and a half dollars) to the education budget to fund necessary secondary school operations, by simply requiring the Maine Maritime Academy to sell the recently illegally purchased (2007) mansion for the president of the MMA that was initiated by your HACKS you placed on the education committees. All this crying about a tight education budget is just pure hot air when your subsidizing 400 maine students at the MMA to the tune of $8,000,000 per year (you do the math) and buying multi-million mansions for the connected elites. Just look at the salaries, pensions, and perks of the MMA administration and you can recoup your deficient 2009 funding.

Those interested (especially Maine education staff that are about to be hit ) can view the MMA corruption at http://www.mmawatch.org/

Hire illegals and make sure they dont pay taxes. The american way!

Does this mean I can't get my free oil to keep my house warm while I'm in Florida Guv'nah?

Let's start with the Gov's budget.... He got us in this mess... and now he thinks everyone else should bail him out of the mess he created... No wonder his Family Business went belly up and had to sell the building..... He can't manage anything!!!!! Why not have DHS start spot checking some of the homes of the young welfare mothers and see who else is residing with them besides their children.... I know many women who get welfare, have live in (working or not working) boyfriends that they don't tell DHS about and we are paying for them to live too... This is outrageous..... These women often get free child care but still sit home and don't have to work and we pay for everything... healthcare, childcare, food, heat, rent, transportation.......... Enough of this.... Welfare is meant to help people out TEMPORARILY not long term!! Help these women by cutting them off and teaching them to be independent... we are not helping anyone by allowing them to live off welfare long term... long term is for the elderly and the handicapped... This would cut the states budget tremendously!!! Then maybe we would have more funds to help people when needed with heating assistance... I know plenty of elderly people (who worked and paid taxes all their lives) that are not physically able to work who are wondering how in the heck they are going to heat their homes this winter on the minimal heating assistance they are getting compared to a single mother with 1, 2 or 3+ children.... What is wrong with this picture??????

If the state had not leased the liquor business we would have money---$288 million in net revenue over 10 years was leased for only $125 million. That is a $163 million SHORTFALL

Actually the Gov only makes $70K a year for what he is doing to us. That's pretty good bang for the buck. Maine is the lowest governor salary in the US. Now for the welfare system, I agree with you. We do them no favors and really just enable the recipients. Like Tikitorch said temporary is the key. When the guy on state aid near my work yells hello to me every morning from his porch while sipping coffee in his robe (!?!?!) it's a bit much. Thank heavens he's at Disney this week and won't pester me with his greetings. And a State agency I forget who is going to get him a new house because the present one leaks heat so bad from neglect. Welfare was supposed to be a leg up not a hand out to be expected. Meanwhile people who actually DO need help can’t get enough and wind up closing one house sharing another between two or more families.

Did MeDHHS ever find the $32-million they 'lost' in their new computer payables system?

You gotta wonder whose pocket that ended up in.

IAM NOT SURE HOW IAM GOING TO SUPPORT MY CHRILDREN IF THE GOVERNOR CUT MY WORK PLACE AGAIN...I KNOW FOR A FACT ILL BE NEXT..I KNOW THE ECONOMY IS IN BAD SHAPE.BUT COME ON,, WE NEED TO DO SOMETHING SOON..I DONT WANNA LOSE MY JOB.I NEED IT,LIKE EVERYONE ELSE DOES..SO COME ON GOVERNOR STOP ALL THESE CUTS...

I think it is refreshing to see Gov. Baldacci making every effort to reduce spending and cost during this economic slowdown. What would be equally refreshing is to see local government take the same path. It is apparent that Bangor City Manager Ed Barrett doesn't believe there is an economic slow down. With new restaurants and big box stores being built and a casino all adding to the tax base...property taxes continue to go up...Ed Barrett is not an elected official so his poor performance can't be measured at election time. Hopefully this coming November election we will see new city councilors elected and will vote not to renew Ed Barrett as Bangor City Manager.

I hope you all understand that when baldacci leaves soon i hope the next govornor will take his place and make it worse cause all of these politicens care for is stealling money for them selves.

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